PhRMA Statement Regarding Puerto Rico Law 154

PhRMA Statement Regarding Puerto Rico Law 154

Washington, D.C. (October 25, 2010) — Pharmaceutical Research and Manufacturers of America (PhRMA) President John Castellani [bio] released the following statement about Law 154, which was signed today in Puerto Rico:

“PhRMA member companies have long had a strong presence in Puerto Rico, providing thousands of stable, high-paying jobs and investment in local economies in the search for new medicines. Last year, America’s biopharmaceutical companies invested more than $65.3 billion into the research and development of innovative life-saving and life-enhancing new treatments. Many of those treatments were researched or manufactured within the Commonwealth.

“Law 154 will dramatically hinder these companies’ positive efforts within Puerto Rico. The measure imposes special taxes on certain activities and transactions conducted by non-resident individuals and companies in Puerto Rico. This could significantly reduce the ability of PhRMA’s members to operate in the Commonwealth and to continue to make significant investments in researching and developing innovative new medicines for patients. In addition, we are concerned that this significant new tax increase was developed and enacted without the opportunity for public input and comment. Transparent and predictable tax policies are critical to helping foster innovation in Puerto Rico. These policies should be developed and vetted through a public process involving all relevant stakeholders, including PhRMA member companies.

“The biopharmaceutical research sector has supported a total of 94,217 jobs and $3.6 billion in output in Puerto Rico, according to the latest survey conducted in 2006. Clinical studies of innovative new medicines are also important to the search for new treatments, and in 2008, U.S. scientists and researchers were conducting 21,795 studies to develop medicines targeting cancers, rare diseases, and other important conditions. Four hundred twenty-five of these trials were active in Puerto Rico.

“Biopharmaceutical research companies play a vital role in Puerto Rico’s economic recovery and global economic competitiveness. The innovative work that supports jobs also provides hope to millions of patients. However, this work depends on a national plan and policies that support innovation, fostering growth among our companies and providing the promise of tomorrow’s groundbreaking new medicines. This new law may have significant consequences that could impact innovation and the Island economy.”

The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country’s leading pharmaceutical research and biotechnology companies, which are devoted to inventing medicines that allow patients to live longer, healthier, and more productive lives. PhRMA companies are leading the way in the search for new cures. PhRMA members alone invested an estimated $50.3 billion in 2008 in discovering and developing new medicines. Industry-wide research and investment reached a record $65.2 billion in 2008.